Top Scoops

Book Reviews | Gordon Campbell | Scoop News | Wellington Scoop | Community Scoop | Search

 

MARKET CLOSE: NZ Stocks Snap 4-Day Rally

MARKET CLOSE: NZ Stocks Snap 4-Day Rally, Telecom Declines

Dec. 1 – New Zealand stocks fell, snapping a four-day rally, amid concern economic data out of the U.S. this week will show a worsening slump, eroding demand for equities.

The NZX 50 Index fell 28.032, or 1%, to 2682.928. Within the index, 23 stocks fell, 15 gained and 11 were unchanged. Telecom Corp. led decliners, falling 6.4% to NZ$2.33 after the company said a loss of its broadband services over the weekend may have been due to a power fault in Auckland.

Pike River Coal fell 2% to 98 cents amid signs that coking coal prices will fall as demand from steelmakers abates. Prices may fall to US$200 a metric ton in the year starting April 1, from US$300 a ton this year, according to a Bloomberg survey of analysts.

In Japan, the Nikkei 225 Index was 1.4% lower in mid-day trading, led by Suzuki Motor and Mazda. Australia’s S&P/ASX 200 Index fell 1.6% to 3681.8 in late afternoon trading, led by resources companies such as Rio Tinto. Fortescue Metals soared 31% amid rumours BHP Billiton may make a takeover bid or Chinese companies seek a stake. Fortescue said it couldn’t explain the surge.

U.S. figures this week may show manufacturing shrank and employers slashed jobs, adding to signs of a deepening recession.

“The macro-economic news it going to get even worse,” said Paul Richardson, who manages about NZ$150 million at BT Funds Management. “Volumes are quite thin and the market is wobbling sideways.”

Dorchester Pacific slumped 50% to 10 cents after posting a first-half loss of NZ$35 million, reflecting a write-off of its stake in ailing finance company St Laurence and an impairment charge against assets. Dorchester needs support from investors for a deferred repayment plan if it is to avoid being placed in receivership.

Air New Zealand declined 2.3% to 87 cents as divers recovered bodies and the flight recorder from the company’s Airbus jet that crashed into the Mediterranean Sea.
Rakon extended its revival, rising 6.4% to NZ$1.49.

The navigation technology company slumped as low as NZ$1 after posting a 66% decline in first-half profit on operating losses in France and weaker world demand.

Some investors “are starting to see light at the end of the tunnel for some of these dreadfully beaten-up sectors,” Richardson said.

(Businesswire)

ENDS

© Scoop Media

 
 
 
 
 
Top Scoops Headlines

 

Scoop HiveMind Project: Universal Basic Income - Are We Up For It?

This is an opportunity for you as one of the 4 million potential funders and recipients of a Universal Basic Income to collectively consider the issue:
1. Is UBI is a desirable policy for New Zealand; and
2. How should a UBI system work in practice. More>>

ALSO:

Lyndon Hood: National Announces Plan To Hit Youth With Big Mallets

The National party has announced its youth justice policy, which includes a controversial plan for recidivist serious youth offenders to be hit over the head with a comically large rubber mallet. More>>

ALSO:

Lyndon Hood: This ->

It's been brought to my attention that Labour's new campaign slogan is "Let's do this". A collective call to action. A mission. I myself was halfway out of the couch before I realised I wasn't sure what it was I was supposed to do. More>>

ALSO:

Scoop Hivemind Report: What New Zealanders Think About Affordable Housing

Ordinary citizens have had very few venues where they can debate and discuss as to what they believe has led to the crisis in affordable housing and how we might begin to address this. The HiveMind on affordable housing was about redressing the balance. More>>

ALSO:

New Hivemind Exploration: Opening The Election - Freshwater Quality

This is an opportunity for you as one of the 4 million guardians of our common water resources to help us find mutually agreeable solutions to the critical task of collectively managing these resources for health and sustainability. More>>

ALSO: